Wachovia/World Savings Fast Track Short Sale Program

by: Paul Rowe on April 9, 2010

Wachovia Bank has been meeting with local real estate professionals here in the Las Vegas area to educate them on a new program designed to dramatically shorten approval times to as little as 7-10 days for certain borrowers. This program has been piloted in several markets around the country and is now being expanded to the hardest hit foreclosure areas such as the Las Vegas real estate market.

The purpose of the new program is not just limited to short sale approvals. The primary goal of Wachovia will be to increase their contact with their borrowers and evaluate them for loan modification. Those who are not suitable for loan modification will be placed in the fast track short sale program.

Here are a few bullet points distressed borrowers should know.

1. Program is designed for “Proprietary Loans” from Wachovia or many of those loans that originated by Word Savings Bank. Proprietary refers to the who is the actual investor/note holder and not just a bank that is simply “servicing” the debt. A good analogy for those not familiar with the lending world can think of a servicer being like a property management company who acts on behalf of a landlord. The management company collects the rent, enforces the lease, evictions etc. The decisions however are really made by the landlord. In our analogy, the landlord and decision maker is the note holder, Wachovia. Loans that are simply being serviced by Wachovia and not held by them would not be eligible for the program because the investor holding the notes has their own guidelines for approving short sales.
2. Borrowers do not have to be delinquent, but must demonstrate that due to any number of legitimate hardships, continuing to pay on the loan is unsustainable and it is in the best interest of all to permit the borrower to do a short sale.
3. Borrowers actually will meet with the local field rep from Wachovia for their area to evaluate their situation.
4. Borrowers may also qualify under the new HAFA guidelines. Wachovia will also evaluate the borrower for that scenario to see if they qualify. HAFA candidates must be owners of primary residences and currently is not open to loans backed by Freddie Mac, FHA, Fannie Mae and VA. Essentially, just loans held entirely by private lending institutions.
5. Received up to $2,500 at closing for relocation assistance.
6. Must list property with a licensed Real Estate Professional. Your agent will help you assemble the correct short sale packet necessary to participate in the program.

To find out if your loan is a proprietary loan, call the Sena Team at 702-376-0088 or email us.

Paul Rowe is the manager for the Sena Team’s short sale division within North American Realty of Nevada.